If your goal is to increase the value of your company, which will have a bigger impact? A 1% increase in price or a 1% increase in growth rate? The answer may surprise you, as the author explains.
Many consumer-packaged-goods companies are stymied because they do not know how (or think it will be too hard) to make the leap toward much greater transparency on the true impact of promotions. The reality is that getting quick results is feasible. CPG companies are learning that the insights derived from advanced analytics capabilities enhance promotion performance—and the bottom line, as the authors explain.
There has recently been a global surge in the cost of raw materials like metal, granite, and even food. Pandemic-related disruptions, increase in demand, intense supply pressures, trade restrictions, tariffs, increasing labor costs, rising import/export costs, and more are wreaking havoc on pricing in the manufacturing sector. Are there options for pricing or contracting that can protect companies from these sorts of price shocks?
Rapid changes in consumer and customer demand will require consumer goods companies—much like companies in other highly dynamic industries—to reset their revenue management practices in order to survive the coronavirus pandemic and thrive in the future beyond it, as the authors explain.